Topic Paper

Abstract

A brief summary of Apple Inc’s history, a look into the stock at its highest share value, glance at Apples current stock price. A look into what all the information gather means for the company and then answer the question Will apple stock recover? Also

Apple stock valued at its true worth?

Apple stock is very controversial. It’s a stock that has been in media mainstream due to its steady increase in price. Many people speculated about how the company was able to keep up the moral. Apple became a Model company and many other companies both like and different benchmarked from Apple. Apple’s stock fit the common mold for its investors. It was a company that produced revenues for its shareholders’ while having ample equity to reinvest into the company creating even more revenue.

Apple stock came in with a bang, exciting its investors, with its first IPO in 1980 of $22.00. The stock has undergone three 2-for-1 stock splits 1 in 1987, another in 2000 and the last one in 2005. (Apple 2013) An investor who was smart and lucky enough to jump on the wagon could have made a small investment of $5000. Taking into account the split of Apple stock that investor could be sitting on over $1,000,000.00. Considering he made the correct moves and held onto his shares and sold them when necessary. Stories as such as this is what got the ball rolling for Apple Inc.

While Apple stock came in on a high back in the 80’s it did linger for some time. It wasn’t until 1997 and 1998 with the return of Steve Jobs that Apple stock price rose over 210%. Yet, in 2000 after the tech bubble burst causing one of the three 2-for-1 splits, apple stock fell. This drop affected many other large tech companies as well. This created cash cow companies that appear to be very undervalued by the investment community, because they offer steady cash flows and huge cash stockpiles, rather than the next big idea. During this downward period Steve Jobs made a statement to investors...